Install
Citizens and State-Backed Insurers terms
Citizens and State-Backed Insurers in Homeowners Insurance: the news, the names and what changed.
AssessmentAn extra charge raised after a state-backed insurer or guaranty fund runs short of money, collected from insurers and sometimes passed on to policyholders.DepopulationA state program that moves policies out of a state-backed insurer and into private companies, shrinking the plan's exposure to the next catastrophe.Difference in conditions (DIC) policyA separate policy built to sit beside a primary policy and pay for perils and coverages the primary one leaves out, such as theft, water damage and liability.FAIR planA state pool, funded by the insurers doing business there, that sells basic property coverage to owners who cannot find it in the regular market.Florida Hurricane Catastrophe FundFlorida's state-run reinsurance program, set up after Hurricane Andrew, that reimburses residential insurers for part of their hurricane losses.Insurer of last resortA state-created or state-sponsored insurer that sells coverage to property owners who cannot get a policy from a private company.Residual marketThe state-created plans and pools that cover property owners the private market declines, as opposed to coverage insurers sell by choice.Takeout policyThe private-market policy offered to a state-backed insurer's customer when a company takes over a block of that plan's policies.Wind-only policyA policy that covers only wind and hail damage, often sold by a state wind pool to coastal homeowners whose main policy excludes wind.